In a move that could signal a significant shift in the media landscape, Google is reducing the value of its deals with Australian publishers by 40% and seeking to shorten the duration of these agreements. This adjustment comes as the Australian government contemplates its regulatory options in response to the tech giant’s actions.
Sources familiar with the matter, who requested anonymity due to the confidential nature of the negotiations, revealed that Google is renegotiating its contracts under the federal news media bargaining code. The company is offering a substantial cut in the financial terms of these deals and pushing for a reduction in the agreement duration from several years to just one year.
The Australian Financial Review was the first to report on the reduced terms. Despite multiple requests for comment, Google has not responded.
These deals, originally established in 2021 under the news media bargaining code, have been crucial in shaping the relationship between tech giants and media organizations. While Google has renewed agreements with smaller and independent publishers, such as The Conversation and Women’s Agenda, and maintained a significant global deal with News Corp, the new reductions could impact the broader media market.
Earlier this year, Meta announced its decision not to renew its media code agreements in Australia. This move led to calls from traditional publishers for the government to impose stricter regulations on Meta, including the possibility of binding arbitration and substantial fines. However, smaller publishers have expressed concerns that such actions could lead to a complete news ban on Facebook and Instagram, potentially devastating their operations.
As the situation evolves, the Australian government faces a complex decision in balancing regulatory measures with the needs of both large and small media organizations.
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